Strong broadband demand boosts BT February 1, 2013 Strong demand for broadband boosted BT’s pre-tax profits in the three months to December, it said this morning. Pre-tax profit jumped seven per cent to £675m in the third quarter, compared to forecasts of £632m. Over the nine months to December, profits soared eight per cent to £1.8bn. BT said it was adding around 100,000 [...]
Fresh scandal to cost banks £2bn January 31, 2013 THE FINANCE watchdog yesterday opened the floodgates to tens of thousands of compensation claims from small firms who may have been missold interest-rate fixing products, representing another major headache for the scandal-struck industry. The four biggest banks will now review the 40,000 interest rate swap transactions made since 2001 in a bid to identify any [...]
Crunch talks to save Seymour Pierce as City broker scrambles for cash January 31, 2013 THE FUTURE of 130-year-old brokerage Seymour Pierce was hanging in the balance last night as its board met to consider administration unless a last-minute investor comes forward. Seymour Pierce, which has been in talks with several potential investors in recent months, is believed to have put Grant Thornton on notice as administrator. The small-cap broker, [...]
FTSE finishes best January since 1989 January 31, 2013 LONDON’S blue chip market has enjoyed its best January since 1989, despite slipping on the final day of the month, yesterday. The FTSE 100 lost 46.23 points to close 0.73 per cent down at 6,276.88. Yet despite this final day dip, the index has nonetheless gained a considerable 6.43 per cent since the start of [...]
Rail firms hit back as new franchise auction is axed January 31, 2013 TRAIN companies have reacted furiously after the government said it will not pay back money they spent on the Great Western rail franchise contest, which was axed yesterday. National Express, one of the firms that was competing for the 15-year contract, said yesterday it is taking legal advice after “the unfair and inconsistent decision not [...]
What the other papers say this morning January 31, 2013 FINANCIAL TIMES Barclays in Qatar loan probe UK authorities are probing an allegation that Barclays loaned Qatar money to invest in the bank as part of its cash call at the height of the financial crisis in 2008, which enabled the bank to avoid a UK government bailout. Neither Sheikh Hamad bin Jassim bin Jabr [...]
Watchdog fears chaotic bank risk modelling January 31, 2013 BANKS set aside such different amounts of capital against the same assets that investors cannot be certain how safe the institutions are and the authorities may have to step in to set standards, a top group of regulators warned yesterday. The Basel Committee tested 15 major international banks, giving them each a hypothetical portfolio of [...]
Morgan Stanley boss doubles pay January 31, 2013 Morgan Stanley said chief executive James Gorman will receive a base salary of $1.5m (£946,000) in 2013, nearly double the $800,000 he received last year. Morgan Stanley, the sixth largest US bank, said the raise was to bring Gorman’s salary into line with the salaries paid to chief executives at rival financial institutions and to [...]
US Congress passes debt bill January 31, 2013 A bill allowing the US government to keep borrowing money for at least a few more months, beyond its record $16.4 trillion (£10.34 trillion) debt limit, won final congressional approval last night, clearing the way for President Barack Obama to sign it into law. The Democratic-led Senate passed the bill, 64-34, which would put off [...]
Mark Carney to be grilled by MPs January 31, 2013 The future governor of the Bank of England will appear before a parliamentary committee on Thursday next week, the first public scrutiny of the man set to fill Sir Mervyn King’s shoes in June. Carney, currently governor of the Canadian central bank, will face MPs from the heavyweight Treasury select committee, chaired by Andrew Tyrie, [...]